Overview

• Ferrero and WK Kellogg have signed a binding agreement to transfer the cereal business for $3.1 billion including debt at $23 per share.
• The price reflects a 31% premium over WK Kellogg’s closing stock price and drove its shares up more than 50% in after-hours trading.
• The deal encompasses manufacturing, marketing and distribution of WK Kellogg’s breakfast cereals across the US, Canada and the Caribbean.
• Shareholder and regulatory reviews lie ahead, with the transaction expected to close in the second half of 2025.
• The acquisition diversifies Ferrero’s lineup beyond chocolate by adding brands such as Froot Loops, Frosted Flakes, Rice Krispies and Corn Flakes.